Indian Iron Ore Imports Continue to Remain Nil in Oct'19
...
Indian iron ore imports for the month of Oct'19 have been recorded nil, according to the data maintained by SteelMint. The imports have recorded nil for the third consecutive month. Indian iron ore imports in July'19 stood at 51,470 MT.
Monthly average global iron ore fines (Fe 62%) decreased by 4% for the month of Oct'19 as compared to last month's prices. The prices recorded at USD 89/MT, CFR China in Oct against last month at USD 93/MT, CFR China. However, it is still non-viable to import iron ore on falling domestic sponge and semi-finished steel prices.
Why have Indian iron ore imports recorded nil for the month?
1. Reduced domestic iron ore prices: Indian domestic miners slashed prices in Sep'19. NMDC reduced iron ore lumps and fines prices by INR 200/MT and DRCLO INR by 230/MT from Chhattisgarh mines, and from Karnataka mines reduced prices INR 300/MT in both fines and lumps. Also, major Odisha miners increased discount for bulk bookings and Serajuddin mines reduced lump offers by INR 300/MT. Comparatively lower domestic prices hindered Indian imports for the month.
2. Lower preference for South African lumps: Imported South African lumps inquiries in India remained on the lower side amid increased preference for domestic pellets. West India based major steel makers were heard purchasing pellets and inhibited lump imports. Also, as per market participants, South African Saldanha port was under maintenance shut in Oct'19. Hence, booking remained dull and is expected to resume for Nov'19 deliveries post resumption at Saldanha port.